New York City Just Outlawed Running Credit Checks on Job Applicants

[eridani]

http://www.thenation.com/blog/204713/new-york-city-just-outlawed-running-credit-checks-job-applicants

Gone are the days when a job applicant could make a good first impression with a smart suit and firm handshake. Now your first impression might get boiled down to three digits on a botched credit rap sheet, leading a boss to reject you, sight unseen.

But the city where first impressions count for everything is about to make the job market a little less judgmental. New York’s City Council just voted overwhelmingly to outlaw the common practice of letting employers prejudge people based on their credit history—passing an unprecedented ban against employers use of workers’ credit background data.

The legislation, which passed last Thursday following an extensive grassroots campaign by local and national labor and community groups, restricts a boss, prospective employer or agency from “us[ing] an individual’s consumer credit history in making employment decisions.”

The final version incorporates some compromises pushed by the business lobby, such as carve-outs for positions that could involve handling “financial agreements valued at $10,000 or more,” police and national-security related jobs, or workers with access to “trade secrets.” While business groups cited these provisions as wins in a bill they otherwise chafed at, economic justice advocates have nonetheless hailed the law as a promising boost for an emerging nationwide movement.

Sarah Ludwig of the New Economy Project says, “It’s a strong law…and it’s going to cover most New Yorkers [and] most jobs by far and away. It’s a real civil rights victory.”

[napi21]

1. Good for NY! There is NO REASON to check an applicant's credit score, unless they are to be

hired as CFO, or Budget manager. In THOSE type of jobs, how you handle your personal money indicates how you might deal with that of the company you will work for.

[customerserviceguy]

2. Can we say the same thing

about auto insurance rates? Having your career melt down because of a shitty economy does not make you a bad driver or a bad employee for the next seven years.

And I say this as someone who has a stellar credit rating today, but had to file for bankruptcy about twenty years ago, so I've been on both sides of the street.

[napi21]

4. Actually you can, if you are applying for a job driving.

I realize a shitty economy can be the trigger for a bankruptcy, but were a good accountant aned manager of money, you most likely would not have gotten into the position to be so affected by the economy. It still would have weight in deciding if you were capable of managing a company's money and investments.

I used the money mgr. as an example, but your ability to do many jobs can be influenced by your personal history.

[customerserviceguy]

12. Ah, the old

"if something bad happened to you, you must have deserved it. That's why it can't happen to me." rationale.

My bankruptcy was caused by a ruinous custody battle for my children, when their mother decided she wanted to have her second marriage with a convicted child rapist. The fact that I got my credit back up to stellar was because I was actually pretty damned good with my money, when I wasn't in the fight of my life.

Losing your job at the beginning of a recession because some boss fifteen levels above you ran the company into the ground has no bearing on your ability to either drive a car or work for somebody else that you're forced to put your trust in.

[napi21]

13. You're right of course. There are always situations where you had absolutely no fault

in the problem. If there's a chance to explain the situation, that's what you should do. If the HR mgr. just looks at credit scores, I see no way out but time to repair it like you did.

[customerserviceguy]

14. Yes, if you get the chance to talk to an HR manager

you might be able to make that explanation. But what if they simply pull a raw score, and not bother to see any explanation you might have on file with the credit bureaus, just because they want to weed out as many applicants as possible quickly?

Seven years (or ten, if you filed bankruptcy) of low level pay isn't going to do a lot to help your credit rating, either. It's like indentured servitude.

[drray23]

3. as a matter of fact

I despise the whole idea of credit rating agencies. It is legalized racket aimed at making us, the average joes slaves to the corporations. We did just fine before there was credit rating agencies. You would go to the bank talk to your local banker when you needed a loan. They would gauge whether or not you could be trusted to repay and shake on it.

Now, people who lose their jobs end up in a never ending spiral. You start missing bills, your credit goes down the drain. You then have to content with the job market, with the added handicap that your credit may sink your chances at getting a new job.

[sabrina 1]

5. That's good news, it should be a Federal law. Who on earth came up with that moronic policy?

Bloomberg/Giuliani were no doubt on board with it.

Don't know that for sure, I should say to be honest, but neither was particularly worker friendly. They ran NYC for the Wealthy.

[KamaAina]

6. Corporations.

They are people, my friend. </mittwit>

The odious practice has been legal everywhere until now.

[sabrina 1]

8. Corporations write our laws now, Congress just rubber stamps them.

What a shame, it could have been such a great country, for, by and of the people.

[KamaAina]

9. Like the man said, "the last, best hope of Earth."

The fact that we're amazed that Abe was a Republican is a large part of the problem.

[951-Riverside]

7. There also needs to be a move to end the practice of landlords asking that tenants make 2-3 times...

what monthly rent is worth.

[appalachiablue]

10. Terrific for NY! Very discriminatory, invasive policy.

I've thought the widespread use of credit reports for everything, wrong for a long time.

[bigwillq]

11. Good.